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  "description": "South Dakota has no state income tax — but does that actually make it one of the lowest-tax states overall?",
  "path": "/fact-brief-south-dakota-federal-tax-rates-ranking/",
  "publishedAt": "2026-04-09T09:23:36.000Z",
  "site": "https://www.sdnewswatch.org",
  "tags": [
    "South Dakota News Watch Quiz - GigafactGigafact",
    "this one.",
    "State Tax Competitive Index",
    "The best state for taxes",
    "ITEP Tax Inequality Index",
    "Taxes in South Dakota",
    "South Dakota News Watch",
    "Gigafact",
    "on the tipline",
    "Donate",
    "Share your thoughts on this story",
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  "textContent": "## Yes.\n\nSouth Dakota has one of the lowest overall state tax burdens in the country, largely because it does not tax individual income and lacks several major statewide taxes.\n\nThe Tax Foundation ranks South Dakota No. 2 in the State Tax Competitiveness Index when factoring in corporate, individual, sales, property and unemployment insurance taxes. Wyoming is No. 1 overall.\n\nSouth Dakota is ranked No. 1 in corporate taxes and No. 1 in individual taxes. The state’s lack of an income tax helps keep overall state and local tax burdens among the lowest in the nation.\n\nSouth Dakota News Watch Quiz - GigafactGigafact\n\nHowever, the Institute on Taxation and Economic Policy regularly ranks South Dakota among the states with the most regressive tax systems, meaning lower-income households pay a larger share of their income in state and local taxes than higher-income households.\n\nSouth Dakota does not have an estate tax, inheritance tax or corporate income tax.\n\n_This fact brief responds to conversations such as_  this one.\n\n## Sources\n\nThe Tax Foundation, State Tax Competitive Index\n\nFidelity, The best state for taxes\n\nInstitute of Taxation and Economic Policy, ITEP Tax Inequality Index\n\nThe Tax Foundation, Taxes in South Dakota\n\n* * *\n\nSouth Dakota News Watch partners with Gigafact to publish fact briefs that refute or confirm a claim with supporting information and additional evidence and context. Send questions or feedback to _news@sdnewswatch.org_. Submit a question for us to answer on the tipline.\n\nThis newsletter and all our stories are free because we believe that ****essential, fact-based information should be available to everyone**** , not just those who can pay for it. If you can afford it, ****please consider joining others and becoming a supporter****. Thank you.\n\n\n                            Donate\n                        \n\nShare your thoughts on this story\n\n_**South Dakota News Watch** is an independent nonprofit. Read, donate and subscribe for free at _sdnewswatch.org_.**Contact freelance reporter Michael Klinski:** michael.klinski@sdnewswatch.org._",
  "title": "Fact brief: Does SD have one of the lowest tax rates in the country?",
  "updatedAt": "2026-04-09T09:23:37.080Z"
}